Sharks rejected this ‘Shark Tank’ pitch, but one guest judge saw the potential — and now sales are up 400%
'Shark Tank' investors have a great deal of experience with extensive knowledge, so they know where to invest their money. Many people would blindly trust the advice given by these esteemed Sharks. However, a guest Shark went against everyone when aspiring entrepreneur Rosa Li was seen asking for $500,000 in exchange for 5% stake in her immune-boosting sparkling wonder drink company, Wildwonder. During Episode 11 of 'Shark Tank' Season 14, which aired on January 13, 2023, Li introduced the first-ever gut health beverage in front of the panelists Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, and Tony Xu.
In the episode, Li stated that her Wildwonder beverages come in four different flavors: Strawberry Passion, Guava Rose, Peach Ginger, and Mango Gold. When asked how she came up with the idea of Wildwonder, Li shared that she drew inspiration from her grandmother's recipe books and combined natural ingredients to create a super-gut cleansing, mood-elevating, and brain health-promoting beverage.
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In an interview with Food Republic, Li candidly spoke about Wildwonder and explained, "We don't use any refined sugars, and all everyday flavors are USDA Organic, non-GMO, vegan, caffeine-free, and gluten-free, containing 1 billion live probiotics and five grams of prebiotic fiber with only six grams of sugar and 40 calories. Each can is the perfect blend of the herbs and botanicals from my heritage and the bold fruit flavors of a California fruit stand."
During her pitch on 'Shark Tank', Li mentioned that every drink is created, keeping the rawness of nature in mind. Li further elaborated, "Every can has five grams of Prebiotic fiber, that's unusual in a drink, we're a more holistic way to approach gut health." Soon after, Li began telling the numbers, revealing that her company had gained $2.1 million with the help of seed funding. Although Li noted that her company was nowhere near making any marginal profits. At the time of valuation, Li's company generated $1.4 million in revenue and had a successful run rate of $2.5 million.
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Li voiced out that she was working on reducing the production cost of her drinks by 20 cents. The Sharks were impressed by the vast range and variety of Wildwonder drinks, but they were still not convinced to invest in it. At first, Corcoran backed out due to her previous two failed beverage deals made on the ABC business program. As per Market Realist, O'Leary also dropped out by saying, "At five percent, I don't even get out of bed for five percent. For me, I'm out." Shortly afterward, Greiner said, "For me, the risk isn't matching the reward. I think you're in a very, very, very big market, so I'm sorry I'm out."
Then, Xu made an offer of a $500,000 investment for a 9% equity stake to Li, and she tried to negotiate the deal by asking him to lower the equity to 6%. At the end, Li sealed the deal with Xu. Wildwonder's sales skyrocketed after the company's appearance on 'Shark Tank.' Li shared, "The month 'Shark Tank' aired was nothing short of transformational for Wildwonder. What we used to sell in a year, we sold in just one month. Over the following year, our growth skyrocketed — sales grew by 400%, or five times what they were the year before."
